USDA
Bumps Corn Crop Estimate to 11.74 Billion Bushels, NCGA Notes (11-12-04)
At 11.74 billion bushels,
this fall’s corn crop is expected
to be 16 percent larger than last year’s record-breaking
crop, according to the U.S. Department of Agriculture’s (USDA)
crop production report released today. USDA forecasts the average
national yield to be 160.2 bushels per acre, up 18 bushels per
acre from last year.
If realized, both production
and yield would easily establish new records. And while total
corn production is poised to set a
new record, so is corn utilization, according to today’s
USDA world agriculture supply and demand report. Driven by strong
domestic demand for livestock and ethanol, total use is forecasted
at 10.9 billion bushels, or 93 percent of this year’s expected
production.
National Corn Growers
Association (NCGA) CEO Rick Tolman said today’s USDA reports
demonstrate the ability of corn growers to respond to market
signals.
“These incredible production and use numbers demonstrate
the dynamic nature of the corn sector,” he said. “Coming
into this marketing year, corn farmers knew there was going to
be a significant increase in demand. Obviously, those who might
have been worried about the corn sector’s ability to meet
demand for all uses needn’t worry.”
The early expectations for feed and ethanol demand have materialized,
while export demand has remained relatively static due largely
to increased corn production in China and the European Union.
Projected feed and residual
use increased slightly from USDA’s
October report, while expected export use decreased by 1.2 percent.
Feed and residual use will account for 6.075 billion bushels, while
exports constitute 2.05 billion bushels, according to USDA. Corn
use projections for ethanol, estimated at 1.37 billion bushels,
remained unchanged from the October report.
With the exception of Wisconsin, yields in the Corn Belt states
are forecast at record high levels. Yields in Iowa are expected
to average 183 bushels per acre, while Illinois corn growers should
expect an average of 180 bushels per acre, according to USDA. Iowa
production is forecasted at 2.25 billion bushels, while Illinois
is projected to harvest 2.08 billion bushels.